The most outstanding intangible quality of the Daiwa House group is its pioneering spirit. We were the pioneers in the introduction of prefabricated housing to the Japanese market, and since then we have constantly pursued new products and new ways of doing business, including marketing incorporating mortgage loans, resort hotels, and the home center business, among others. As our history clearly shows, while seeking innovation, we have always centered our business on housing and closely related operations, and we will never deviate from this policy in the slightest. This is because we recognize that the home is where the heart is — all dreams start here.

To help home buyers realize their dreams, we have positioned four focal themes for the 21st century: welfare, the environment, health, and telecommunications.
Regarding welfare, back in 1986 we foresaw today’s rapidly aging society and opened a nursing care home for senior citizens, and in 1989 we set up the Silver Age Research Center for the investigation of issues related to housing and care for the elderly. Based on the center’s findings, we have set up more than 700 nursing care facilities and Day service centers for the elderly. Nursing care facilities, including communal dwellings (protected accommodation), constitute a promising market in which we can effectively utilize the know-how possessed by the Center in both equipment and services, and good growth is expected in the future.

With regard to environmental concerns, we are cooperating closely with universities and companies in other industrial sectors to pursue research into electricity generation through renewable energy such as solar power and wind power, facilities for the disposal of industrial waste or the recycling of waste materials, and so on, with a view to turning them into commercially viable projects.

Health and telecommunications are the most important themes intertwined with lifestyles. The rapidly growing popularity of broadband Internet access means that the interconnection between housing and IT, particularly telecommunications, will become stronger than ever. Moreover, increasing demand is projected for at-home health monitoring and easy communication with hospitals or clinics, as well as the provision of medical care at home.

From here onward, home buyers will become increasingly demanding, and there will be a growing focus on quality and various value-added aspects. We must therefore respond by creating a stimulating and liberal working environment that facilitates the optimization of our employees's creativity. This will include a new pay and promotion system, which we are now designing. By these means, we will be able to pool the expertise and research of all our staff. The intelligence and creativity of our group staff are a valuable intangible intellectual asset that does not appear in our balance sheet but which lies behind the group's brand image, technological capabilities, and superiority in design. We will protect and foster this intangible asset with the same care that we devote to more conventional, tangible assets.

Setting new goals, dreaming new dreams. We are creating a new corporate culture focused on intelligence and creativity. Our corporate mission is to make our customers's dreams come true.

In the foregoing pages, I have described my vision of the Daiwa House group's future, and I hope you share my aspirations and enthusiasm. Now, in fiscal 2003, we once again take on new challenges on the road to carving out a bright future for Japan's housing industry.
We are now committed to making progress in our initiatives in the areas of corporate governance and risk management. We also plan to issue quarterly reports. Through these means, and by realizing an ever-growing corporate value, we are determined to properly fulfill our duties as a responsible corporate citizen to all our stakeholders. We look forward to your continued support, and hope that you will help us to make new dreams come true.